By hiring a professional property valuation company to assess your properties, you get an accurate information on the fair price of your property. Determining the value of a property depends on many factors like structure, location, the number of years your property was built and other significant factors. It is a highly technical job which should be done periodically for the following reasons.
When You Plan to Sell Your Property
You don’t want to be shortchanged in a transaction that involves the sale of your property. By knowing the fair price of your property, you can set a buying price that will give you profit from the transaction. It is necessary that you get the realistic price for your property which is the essential purpose of hiring professional property valuers.
To Pay the Right Taxes
Honest taxpayers pay their taxes according to the real value of their assets. Property valuation is thus important to compute the exact taxable amount of your properties. So you won’t be paying more taxes than you should, an annual valuation of your property is recommended.
For owners of large properties such as commercial buildings, a periodic valuation of their properties is advantageous on their part as taxpayers because annual depreciation of their properties is taken into consideration in the computation of their yearly property tax.
For Securing Funding
Financial Lending Institutions such as banks and other lending agencies which may be government or private companies require collaterals. The properties used as collaterals are mandated to have the latest valuation report from a licensed property valuation company. Banks grant loans on the basis of the value of the collateral that is presented.
For Property Insurance
By having an insurance policy for your property, you will get reimbursement in cases when your property is subjected to damage which can be caused by fire, flood, earthquake or other natural and man-made disasters. The amount of reimbursement will depend on the policy you acquired, the value of your property, the extent of damage, and other factors.
As Basis for Future Decisions
A complete analysis of all investments made by a company can only be derived through reliable and updated reports such as evaluation of the company’s properties in order to have an efficient business planning and to support future endeavors.
Knowing the real value of your properties will enable you to make informed decisions regarding your assets which is the real essence of property valuation.